[Market Now] Sajo Haepyo guarantees affiliate loans

Sajo Haepyo, a listed soybean company of Sajo Group, said Tuesday that it will guarantee loans worth 5.7 billion won ($5 million) to its affiliate Sajo Bio Feed borrowed from NH Bank.

Sajo Haepyo has set aside some 6.9 billion won as guarantee fund in case Sajo Bio defaults on its loans, the company said in a regulatory filing. 

Sajo Haepyo has a 25 percent stake in Sajo Bio Feed, which produces livestock feeds. Sajo Industries, a seafood giant, is the biggest shareholder with a 20.9 percent in Sajo Haepyo. CJ Olive Networks, part of CJ Group, has a 12.6 percent stake.

Last month, Sajo Haepyo allocated 40 billion won to guarantee loans of DongA One, a flour company Sajo Group acquired early this year.

Sajo Group is widely known for its canned tuna fish brand in Korea.

By Park Hyong-ki (hkp@heraldcorp.com)